The Leeds company, which is rebuilding after a period of turmoil which saw office closures and hundreds of job losses, also said it has extended a test of its banking covenants by a month – and expects to request a further extension.

WYG is now working on restructuring its debt pile, which could include an equity issue plus banks taking a stake. The Yorkshire Post understands the company has already made an abortive attempt to raise cash from investors this year.

WYG yesterday said it has appointed Pace chairman Mike McTighe as non-executive chairman.

The group has also created the role of services director, bringing in Graham Olver, a barrister with significant international experience.

"We want to send out a new message about the strength of the board and the confidence we have got in putting the business on a stable footing," said chief executive Paul Hamer. "We are confident that we are now building a board that will be equipped for the challenges we have got going forward, and as part of that we will come up with a solution that will stabilise the business and put it on a much more solid financial footing for a longer period of time."

Mr McTighe has been non-executive chairman at Saltaire-based set-top company Pace since May 2006.

He is also chairman of Volex Group, a member of the board of Ofcom and chairman of a number of private equity-backed companies. Previously he was chairman and chief executive of Carrier1 International SA, and before that executive director and chief executive of global operations at Cable & Wireless.

Mr Hamer said Mr McTighe has been working with the group behind the scenes for some months as an adviser.

Mr Olver was previously commercial and operations director at Skanska Infrastructure Development. Prior to that he worked with Thames Water and Alstom in commercial and legal roles.

Former chairman, Peter Wood, resigned from WYG in March, and Brian Duckworth stepped in as a temporary replacement. WYG said Mr
Duckworth will now step down as chair-man.

Non-executive director John Richardson is also standing down after 12 years at the next annual meeting, meaning the company is now on the hunt for two new non-executives.

WYG added challenging trading conditions have continued into its new financial year, and it is cautious on the outlook.

The company is currently locked in talks with its syndicate of banks, led by Lloyds. Its debt pile was last reported as £91.5m and has a syndicated facility of £112m.

"It (the covenant test deferral) suggests that they (its banks) are positive about our business," said Mr Hamer. "My raison d'être is we will take whatever time it takes to put the right capital structure in place rather than the quickest capital structure in place."

One analyst suggested this was likely to mean an equity fundraising plus a possible debt-for-equity swap.

"They did try to raise equity funding earlier this year and failed," said an analyst. "After the interims they went round and were trying to assess what the demand would be.

"They were probably a bit unlucky because the markets were downbeat and there were a number of other fundraisings at that time."


Vital role in airport expansion

White Young Green is working on Leeds Bradford Airport's £28m expansion plans.

Working for the airport's private equity owner Bridgepoint Capital, WYG Planning & Design won plan-ning approval for an extension of the airport terminal.

Subject to further approval, the project will feature a two-storey extension incorporating a new departure lounge, imp-roved shops and an expanded security screening zone.

WYG Planning & Design is part of a consultancy team advising on the project, and submitted the application in December 2008.